With everyone leading such busy lives, it can be difficult to keep a close eye on your personal finances.
Many people simply see their paycheck come in and bills go out and don’t pay much attention to what happens in between. If at some point you are looking to buy a house, a car or looking to get a loan then getting on top of your personal finances is important.
There could be some actions you can take to improve your chances of getting approved.
Check Your Credit Score
One of the best ways you can find out what position you are in from a lender’s perspective is by checking your credit score. Your credit score takes into account all of your previous credit history and provides you with an overview of your financial position.
A credit score is usually used by lenders such as credit card companies and banks to check if you are eligible for a certain type of loan. If your credit score isn’t great, then there are companies that offer loans with no credit check that you can use if you need to borrow some money.
Cancel Unused Subscriptions
One thing that you can do to save you a large amount of money is to check for any subscriptions that come out of your account that you no longer use. One great example of this is gym memberships where people sign up at the start of the year, stop going in the summer but continue to pay the membership. This can be as much as £60-£100 every month going to waste.
Another one to check is your entertainment subscriptions. You could be signed up to Netflix, Now TV, YouTube, Amazon Prime and more, and paying every month for content you don’t watch.
The best way to check these is to look at your next monthly bank statement, circle any you no longer use and cancel them going forward.
Check Your Utility Bills
Unfortunately, most utility bills tend to go up in price every year, so a good option, if you are looking to save money, is to lock into a fixed price deal with your energy supplier. If you are coming to the end of your contract with them, then you can use a price comparison website to find cheaper deals to help save you money.
If you are not in a position to change supplier, but would still like to save money, then there are a few ways you can knock some money off your upcoming bills. One is to ensure that your house is properly insulated which might mean heading into the loft and putting in some extra insulation.
Another is to keep an eye on the temperature of your rooms. Turning the thermostat down by 1° can have a surprising impact on your next heating bill.
Better Personal Finances
It doesn’t have to be difficult to sort out your personal finances. One simple rule is to make sure that you don’t spend more than you make every month.
Sometimes you may need to take out a loan for a bigger purchase so ensuring that your finances are in order before doing so will help to put you in a better position to be accepted.